The global market rallied on Tuesday .According to reports central bank stimulus measures may go ahead with the release of the strong US economic data. Yields on U.S treasuries soared to its highest level in over a year as prices slipped.
Yields have increased ever since Fed Chairman Ben Bernanke suggested that the U.S central bank might start slowing down its bond purchases to boost economic recovery.
Wall Street closed 0.7% higher, according to reports, indicating the rise in the US house prices in over five years. While S&P 500 closed at 0.6%, the broad FTSE 100 closed 1.6% higher and France’s Cac closed at 1.4%.
Tokyo’s Nikkei stock index .N225 reached a 5-1/2-year high last week before it dropped to 7.3 on Thursday.
The U.S stocks recovered from its weakness, as the US dollar bounced back against the Japanese yen and euro after the data on U.S consumer confidence and home prices said the economy was improving.
The rate of the U.S consumer confidence increased to its highest level in over five years in May. Treasury yields have helped boost the demand in dollar investments.
The U.S. dollar rallied against the Japanese yen and euro as the sturdy U.S economic data highlights views from the Fed, regarding the reduction in bond purchases.
Against the yen, the U.S. dollar rose by 1.2% to 102.09yen, recovering from the two-week low of 100.68 last week.
The Swiss franc slipped to 1.1% against the U.S dollar at 0.9740. The dollar index rose 0.6 % to 84.172 DXY.
Escaping its safe-haven status, Gold dropped by 1 percent, while spot gold fell by 1 percent to $1,380.81 an ounce.
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